The Trade Strategy Council (CEC) of the Chamber of Foreign Trade (Camex) approved, through Resolution CEC No. 1, of March 10, 2021, a negotiating mandate for potential Free Trade Agreements between Mercosur and Indonesia and between Mercosur and Vietnam, covering tariff and non-tariff topics related to trade. The granting of a negotiating mandate signals the fulfillment of internal requirements that authorize the beginning of commercial negotiations with counterparties.
Indonesia is the fourth most populous nation and the 15th largest economy in the world. According to data from ComexStat, in 2020, Indonesia ranked 23rd in the ranking of Brazilian exports and 27th in the ranking of imports.
Vietnam is the 15th most populous nation and the 36th economy in the world. According to the World Bank, before the Covid-19 pandemic, the Vietnamese economy grew by over 7% for two consecutive years. Brazilian foreign trade data provided by ComexStat for 2020 shows that Vietnam occupied the 25th place in the ranking of exports and is the 15th main partner for imports.
With the approval of the negotiating mandate, Brazil will jointly articulate strategies to advance the commercial negotiation with other Mercosur partners as well as prepare an exchange of offers and initiate discussions on market access rules (rules of origin, facilitation of trade and non-tariff barriers).
Brazil is also currently undertaking negotiations for the signing of trade agreements between Mercosur-Canada, Mercosur-South Korea, Mercosur-Lebanon and Mercosur-Singapore, as well as Brazils accession into the WTO Agreement on Government Procurement (GPA).
The International Trade area of Azevedo Sette Advogados - São Paulo is available to provide further information at lsalles@azevedosette.com.br.